And why you should ignore them all
There are many reasons people tend not to outsource their commercial debt collections.
But that doesn’t mean these are good or helpful ideas to have.
This article will outline five motivations people have for collecting their own debt and why you should ignore them all.
The most legally sound way of retrieving your money from non-paying clients is to hire a commercial lawyer.
Then you know that their methods are above board, helping to maintain your relationships with clients, even as you seek payment for outstanding invoices.
Not sure what commercial debt collection is?
Read on for the misleading five objections people have to hiring a lawyer for debt collection.
1. It only works for big debts
Business owners might not think of hiring a commercial lawyer to help with debt collection because they believe it’s only worthwhile for big debts.
However, if you have many small debts clients owe you, it can add up and cause significant consequences to your business.
Commercial debt collection is the only answer unless you want to be scrabbling after clients and doing all the legwork to get your money back yourself.
Often, a formal letter from a commercial lawyer can put the wind up clients who have neglected to pay so far.
There’s something about involving lawyers in commercial debt collection that lets clients know you’re serious about recouping your money.
The implied threat of legal action can often be just the motivation needed to cause clients to pay.
In addition, outsourcing your commercial debt collection to a lawyer means that you can distance yourself from the collections process and maintain good relationships with your clients.
Outsourcing your debt, no matter how small, makes good business sense.
2. Commercial debt collection is expensive
Hiring a commercial lawyer is not simply an expense but an investment in the health of your business.
If you think that commercial debt collection is expensive, how much is it costing you to allow your debtors to keep your money?
How much is it costing you in time to chase late and non-paying clients?
To be successful at redeeming debts, you need an effective strategy.
You can be sure that a commercial lawyer knows how to get your money back efficiently, as it is an area of their professional expertise.
By hiring a commercial lawyer, you save considerable amounts of time, and time means money when it comes to business.
Outsource your commercial debt collection to a lawyer because your time is worth more as a business owner than running after clients that don’t want to pay.
You might think that hiring a commercial lawyer is an expense you can’t justify.
But if you don’t hire a lawyer, how much more time will you spend chasing business owners for money, to no effect?
3. Dealing with lawyers is time-consuming
Commercial lawyers often charge by the hour, so they understand that time is of the essence.
Commercial debt collection is a simple process for lawyers experienced in these matters.
All they need to do is get the initial details from you. Then they will have their time-tested methods for retrieving your cash.
If you think dealing with lawyers is time-consuming, what do you call dealing with debtors?
Although you may think lawyers will chew up all your time, they can be valuable allies in your quest to get your money back.
A well-worded letter from a lawyer holds so much more weight than your repeated pleas for your clients to pay up finally.
You may find that hiring a commercial lawyer is a highly efficient way to deal with business debtors.
Find out how else a commercial lawyer can help protect your business.
4. Lawyers are aggressive with your clients
You may have heard of aggressive commercial debt collection, stories of abusive phone calls at all hours of the day and night, for example.
Commercial lawyers do not conduct themselves in this manner, and if they did, their reputation would quickly be in the mud.
This idea of the rude or offensive debt collector comes from the conduct of dubious agencies that hide behind threats and fear rather than doing things humanely and professionally.
Commercial lawyers understand that the business relationship between you and your client is essential and valuable and not to be sacrificed in the pursuit of your money.
Therefore lawyers are politely persuasive, using their professional authority to help motivate clients to pay the money they owe you.
A lawyer must have the communication skills to be assertive without being a bully.
They want to achieve the best-case scenario; your money back and the client relationship maintained.
5. I don’t need a lawyer
As you read this article concerning commercial debt collection, you might be thinking, “I don’t need a lawyer. I can settle this myself”.
The DIY spirit of the business owner or entrepreneur is powerful.
But there are some things that you really shouldn’t do yourself due to the law of diminishing returns.
Yes, you can send emails to your clients, you can send them letters in the post, you can telephone them too, but will you get the results you want?
Or will you end up frustrated and resentful because your clients are still not paying you, and now some of them might even be doing their best to avoid you?
An expert in commercial debt collection will know all the ins and outs, including the legalities, which keep your side of the street clear.
By hiring a commercial lawyer, you can ensure that your company is abiding by all debt collecting laws.
Choose the safest method for debt collection
When you hire P&B Law to seek repayment of your clients’ debts, you know you will get a professional, lawful approach from our experts in commercial law.
If you’re not sure of the legalities of debt collection, you are much better off outsourcing the process to someone who is.
Contact us today to get the support you need with debt collection and ensure the ongoing health of your business.